Stock Trading News

Pension Funds – How Do They Invest? [Example Portfolio]

Pension funds operate by pooling the money of many investors to allocate into a wide variety of assets, including stocks, bonds, real estate, and other investment alternatives. Pensions are managed by professional fund managers that oversee a pool of funds specific to a certain group, such as a group of teachers in a particular school […]

How Do I Make $500, $1,000, $5,000… Per Month in Dividends?

Monthly dividends are prized because they provide reliable and consistent income. Dividends by and large are used to signal that a certain amount of corporate earnings are guaranteed. Stocks tend to be punished heavily when dividends are cut. And given most companies tend to grow their earnings over time and dividends become a more realistic […]

How Do Banks Make Money? (Breakdown)

How do banks make money? From the outside, banks can seem like more of a mystery relative to other businesses. For most businesses, they make money by selling goods and services. On the other hand, banks don’t sell traditional goods and work more with money and credit and use it to make even more money. […]

A Basic Overview of Financial Market Forecasting (Macro Forecasting)

In macroeconomic forecasting of financial markets, it start with inflation, which moves into interest rates, which then flows into every other market. Inflation There are various definitions of inflation and everyone’s opinion on the inflation rate might be different because their basket of goods and services is different; their exact basket may vary significantly depending […]

What’s a Good Trade Winning Percentage?

When it comes to trading, many people fixate on their winning percentage as a measure of their success. However, it’s important to understand that a high winning percentage doesn’t necessarily mean you are making money, and a low winning percentage doesn’t necessarily mean you are losing money.   Key Takeaways – Good Trade Win Percentage […]

How to Invest in the S&P 500

The S&P 500 is largely regarded as the world’s top equity index benchmark. Many investment managers track their performance relative to the S&P 500 and it’s commonly noted how difficult it can be to beat the S&P 500 “beat the market” over time. Given that, many wish to simply invest in the S&P 500 for […]

Frequency Distribution – What It Is & Use in Trading

What Is a Frequency Distribution? A frequency distribution is a table that displays the frequency of various outcomes in a sample. The first column lists each unique value (or category) of the variable in question, and the second column lists how often that value occurs. For example, imagine you surveyed 100 people about which type […]

Weighted Average Cost of Capital (WACC) in Making Investment Decisions

WACC stands for the weighted average cost of capital. WACC (commonly pronounced “whack”) is the average of the costs of all capital, including equity and debt, that a company has raised to finance its operations. WACC is used to discount a company’s future cash flows back to present value, in order to determine whether or […]

ROIC – How to Use It to Find Good Investments

What Is Return on Invested Capital (ROIC)? Return on invested capital (ROIC) is a financial ratio that measures the profitability and efficiency of a company’s use of capital. It is commonly used to assess whether a company is using its resources in an efficient manner, and it is considered to be a good indicator of […]

Why Diversification Is Harder in Today’s World

Diversification has long been considered a crucial component of successful investing and trading, helping to reduce risk by spreading your trades and investments across a variety of assets, asset classes, countries, and currencies. However, in today’s world, achieving diversification has become more challenging. Inflation, geopolitical risks, and the need for inflation protection all present significant […]

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